VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY LE HONG LONG FACTORS ON TIKTOK VIDEOS AFFECTING CUSTOMERS’ PURCHASE INTENTION MASTER’S THESIS VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY LE HONG LONG FACTORS ON TIKTOK VIDEOS AFFECTING CUSTOMERS’ PURCHASE INTENTION MAJOR: BUSINESS ADMINISTRATION CODE: 8340101.01 RESEARCH SUPERVISORS: ASSOC, PROF. KODO YOKOZAWA DR. YOSHIFUMI HINO Hanoi, 2022 STATEMENT OF COMMITMENT I have read and understood the plagiarism violations. I pledge with personal honor that this research result is my own and does not violate the Regulation on prevention of plagiarism in academic and scientific research activities at Vietnam Japan University (Issued together with Decision No 700/QD-DHVN dated 30/9/2021 by the Rector of Vietnam Japan University).
This dissertation is being submitted in partial fulfillment of requirements for the master’s degree in Business Administration. Other sources are acknowledged by giving explicit references. Signature: Le Hong Long Date: July-2022 ACKNOWLEDGEMENT The Master's thesis was finished owing to the substantial assistance of many persons who provided excellent direction and readiness to help with this research. First, I'd like to express my sincere gratitude to my wonderful supervisor, Assoc.
Kodo Yokozawa and Dr. Yoshifumi Hino, for their support and several valuable recommendations for my Master's thesis. I'd want to thank not just my program - Master of Business Administration — and all of the people in it, notably Mrs. Huyen Huong, the MBA program's assistant, Dr.
Yoshifumi Hino, Tuan Sensei, and Tu Sensei, but also the team at YNU IPO, for their assistance during my studies. Matsui Sensei, Guo Sensei, Tanabu Sensei, Morita Sensei, Inoue Sensei, Kodo Sensei, Kurata Sensei, Yang Sensei, Sakakibara-san, Maeda-san, and other Professors from YNU will always be remembered in my heart. Last but not least, I am eternally thankful to my family and friends for always being by my side and encouraging me to finish this journey. As a result, I consider myself very fortunate to have all of you in my life.
Thank you all once again. Ha Noi, July 2022 Author Le Hong Long ABSTRACT Purpose — This study aims to answer how brand-related communications, including advertising content disseminated on TikTok platforms, can enhance positive perceived value, and evoke good purchase intention from consumers. Design/methodology/approach — This study surveys 162 consumers using TikTok in Viet Nam. The data were analyzed by SPSS, which was used to specify both the measurement and structural models.
The Sobel test tested the mediating effect of perceived value. Finding — The findings demonstrate positive and significant relationships between TikTok advertising content, perceived value, and purchase intention. Percetved value has substantial mediating effects on TikTok advertising content and purchase intention. Besides, the relationship between TikTok advertising content and purchase intention is significant.
Practical implications — This paper proffers insights to brand managers and marketers on leveraging social media content by unearthing the roles of traditional marketing communications such as social media advertising in enhancing customers’ perceived value and improving consumers’ purchase intention. In addition, the fact that TikTok is a new social platform has a substantial impact on young people's purchasing trends, which will help businesses focus more on promoting online communication. Keywords: Marketing communication, Social media advertising, Advertising content, Percetved value, Purchase intention, SOR theory TABLE OF CONTENTS CHAPTER I.120 112011201151 1151111111111 1111 10111011 1111k HH Hy ch l 1.2 Theoretical motIVaäfIOTI.2 Research obJ€CtIV€§. 1 211211211 1211121 1211111111 111111111 1111111111111 01 11 c1 H kg 5 CHAPTER 2: LITERATURE REVIEW.0 2220 nHn H HH ng ke 7 VĂN.2 TIkTok advertising cOTIf€TĂ.1 TikTok Advertising Content and Perceived ValÌue.2 Perceived Value and Purchase Intention.3 TikTok Advertising Content and Purchase Intention.c ao 2n “-“1 13 CHAPTER 3: RESEARCH METHODOLOGY.1 Research DTOC€SS.1 xo ch --ÕÖ-lA3 .2 Data collection DFOC€SS.4 Data analysis approach.-- ---- - 2c 2212221111111 1211 1111111 111111011 101111011181 18 CHAPTER 4: ANALYSIS RESULTS.3 Exploratory Factor AnalysIs (EFA).1 Exploratory Factor Analysis for ndependent vartables.2 Exploratory Factor Analysis for medIator varIables.3 Exploratory Factor Analysis for dependent varIables.A Correlation test nan.6 Demographic differences in evaluating Iindependent variables.1 Differences between male and female in evaluating independent variable and 61soii8nx)ar.2 Differences between male and female In evaluating dependent variable .3 Differences between the level of income in evaluating dependent variable.
31 CHAPTER 5: DISCUSSION AND IMPLICATIONS .1 Discussion of research findings.3 Limitations and sugøestions for future research.- 2c 22c 22x22 34 Appendix: QUES TIONNAIRE. 42 „` eee cece ccceeeececcenscceeensececcensseceessseesentseeentieseeesensectentsscessntsecetenenieeees 45 LIST OF TABLES Table 3. Likert 5-point scalÌe. Measurement scale developiment.
Demographic Characteristics of Respondents. Descriptive statistics of the scale items for independent, mediator and dependent varIabÌes. Cronbach”s alpha summary. Exploratory Factor Analysis for independent variables.
Exploratory Factor Analysts for mediator varIables. Exploratory Factor Analysis for dependent variables. Coefficients between PI and AC,. Coefficients between PV and ÁC.
Coefficients between PI and AC, PV. HH TH HH TH ng 1112111112 sec 28 Table 4. Coefficients between PV and AC, PI.- n1 n S211 SH ng 111211111122 xez 29 Table 4. Hypothesis testing sumimary.
t-test analysis among independent variables and mediator variables. t-test analysis among dependent variables. ANOVA analysis among Ineơme 1ndependent varIables. 31 1 LIST OF ABBREVIATIONS AC: Advertising Content PV: Perceived Value PI: Purchase Intention SNSs: Social Networking Sites 1H LIST OF FIGURES Figure 1.
Research process Figure 3. INTRODUCTION This chapter introduces the topic to be investigated in this thesis by exhibiting the research motivation. In addition, this part discusses the research objectives, research questions, and research contributions.1 Practical motivation According Digital Marketing Courses (2021), for new businesses opening, the first job they need to do is get the first customer is very important. These companies may use print advertisements, discount mailers, and even outdoor advertising.
However, there is a simpler and more effective approach to achieving the same goal. Online consumers represent a far broader pool of prospective clients than you could hope to reach by advertising simply locally. Digital marketing is a cost-effective, scalable, and quantifiable method of reaching a worldwide audience (The Latest CMO Survey Results | Deloitte US, 2021). Customers have demanded a company website and social media presence in the digital era.
They may be seeking reviews to find out what other people think of your business and whether it is a decent location to conduct business for them. As a result, if prospective consumers cannot locate your company on the internet, they may assume that it is not authentic. According to Digital 2021, Global Digital Insights (2021) mobiles are now the most widely used internet device in all countries, 9 in 10 internet users say they go online via a smartphone. According to Ins Marketing Agency, in 2020, 73.56 million Vietnamese people used social media, accounting for 75.6% of the entire population.
The number of people using social media is expected to rise to 93. Compared to other social media sites, in September 2021, social video app TikTok reported | billion monthly active users worldwide, representing a 45 percent growth compared to the previously reported figure of 689 million monthly active users in July 2020 (TikTok MAU 2021 | Statista, n. TikTok Vietnam has proved appealing, with 16 million downloads and a 160 percent increase in downloads on iOS in 2020. TikTok has swiftly risen to the fourth position in the app rankings in the Vietnam market, behind only Facebook, Zalo, and Instagram.
At TikTok, entertainment and commerce are closely linked. Because users want true-to-life and relevant material, marketers must deliver it in their commercials (Tabassum et al. As of June 25, 2020, TikTok has officially launched its new advertising platform, TikTok For Business. This will serve as a marketing hub for businesses’ accounts.
This is yet another reason TikTok is now pro-business. To support small and medium enterprises, on April 29, 2022, TikTok launched a TikTok shop in Vietnam. It turns TikTok from a social network combined with e-commerce right in the application in a whole way. A large proportion of global Generation Z is on TikTok.
Over half of Generation Z consumers are on TikTok now. Generation Z is generally known as those born between 1997 and ; they can readily search for anything with an internet connection and gain more knowledge than prior generations of their age (Seemiller & Grace, 2017). As the youth's culture of iconography, rituals, places, and lifestyles are visible on the platform, Byte Dance’s TikTok has seen a significant surge in users and cultural prominence (Kennedy, 2020). TikTok's innovative and fast-moving algorithm, which primarily promotes short-form films to inspire pleasure and stimulate creativity among its users, demonstrates its attractiveness to youthful consumers worldwide (Weimann & Masri, 2020).
And the bottom line is that TikTok isn’t a serious platform. Businesses that thrive the most on TikTok post fun, light-hearted, visually pleasing videos and follow popular trends. According to The New York Times (2019), as a result of TikTok, small businesses find new methods to communicate with their customers and generate revenue. The proprietors of small businesses wear several positions at once.
Typically, they are the CEO, marketing strategist, operations director, and product manager, all wrapped into one. For more than a year now, they have been the people who have had to face a myriad of obstacles because of the worldwide epidemic. TikTok is transforming the marketing landscape by providing small company owners with new methods to interact with consumers and generate sales. There isn't a competition on TikTok for the highest budget, the hottest famous spokesperson, or the most visually appealing advertising.
The key is to just be yourself. It’s about authenticity and connecting your content to your brand’s identity. When companies share and celebrate their genuine colors, they find the most success on TikTok, whether they wish to appear in their films or partner with TikTok producers. With the advantages coming from the TikTok platform, from the rapidly growing and well-developed user base, advertising, and business on TikTok will become more popular and widespread soon.
From there, leading to this thesis's research purpose is to promote the factors that evaluate the influence of advertising content and purchase intention. It will contribute practical knowledge related to how advertising content on TikTok influences users’ perception and purchase intention.2 Theoretical motivation Typically, Community Commerce is an explosive marketing tool, making TikTok a brand launch pad and a helpful product discovery tool (TikTok 2022, n. Users could not only quickly discover how others rate things and services and get advice from others before purchasing, but they could also openly discuss their experiences with the goods & services afterward (Chen & Shen, 2015). Prior study has primarily focused on the overall perception of worth, with little emphasis on perceived value components.
The impacts of utilitarian and hedonic values on user behavior have been studied (Chandon et al., 2000; Li et al., 2012; Lin & Lu, 2015), but research on social value is lacking. The influence of perceived value on user behavior in a number of commercial environments, including typical shopping mall (Kesari & Atulkar, 2016), online shopping (Jeong et al., 2009; Carlson et al., 2015; Chiu et al., 2014), and mobile shopping (Xu et al., 2015; Kuo et al., 2009) has been experimentally supported by prior studies. Social commerce users want social qualities and utilitarian and hedonic values, including convenience and pleasure (O’Brien, 2010). Consequently, this research splits perceived advantages into three categories: utilitarian, hedonic, and social.
In the context of social commerce, Rintamaki et al. (2006) explore the impact of perceived value on purchase intention. According to previous studies, consumers assess marketing communications such as advertising, sales promotion, and electronic word-of-mouth on social media (Adetunji et al. Advertising, for example, is defined by Keller (2009) as any paid type of non-personal presentation and promotion of ideas, commodities, or services by an identifiable sponsor.
More specifically, Kim & Ko (2012) classified social media advertising material as "persuasive and prepared" content (video, picture 1.,) published on third-party websites or social media walls by advertising professionals or brand owners.